iShares Long-Term National Muni Bond ETF

LMUB

Market cap $1.66B

Fund-level leverage is only attractive when carry or capital gains potential is high; current tight spreads and an inverted yield curve make it less appealing. For tax-exempt CEFs, higher yields often come from longer duration, not leverage; unleveraged long-duration funds or ETFs can offer similar or better yields. Investors should not assume more leverage is always better; careful, situation-specific exposure to fund-level leverage is key to balancing risk and return.

BlackRock has listed a new municipal bond ETF on the NYSE Arca today, the iShares Long-Term National Muni Bond ETF (LMUB).   LMUB tracks the ICE AMT-Free US Long National Municipal Index, which measures the performance of investment-grade U.S. municipal bonds with remaining maturities of 12 years or more.